Dictionary of Law
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goodwill :: legal definition


Goodwill - n. the benefit of a business having a good reputation under its name and regular patronage. Goodwill is not tangible like equipment, right to lease the premises or inventory of goods. It becomes important when a business is sold, since there can be an allocation in the sales price for the value of the goodwill, which is always a subjective estimate. Included in goodwill upon sale may be the right to do business without competition by the seller in the area and/or for a specified period of time. Sellers like the allocation to goodwill to be high since it is not subject to capital gains tax, while buyers prefer it to be low, because it cannot be depreciated for tax purposes like tangible assets. Goodwill also may be overestimated by a proud seller and believed by an unknowing buyer.

See also: sale and Related Law Terms ↓


Related Law Terms

bankruptcy :: n. a federal system of statutes and courts which p ... y proceedings trustee in bankruptcy
bulk sales acts :: n. state laws (spelled out in the Uniform Commerci ... g without paying current creditors.
capital gains :: n. the difference between the sales price and the ... so: basis delayed exchange exchange
constitutional rights :: n. rights given or reserved to the people by the U ... e also: Bill of Rights constitution
covenant not to compete :: n. a common provision in a contract for sale of a ... the sales price. See also: covenant
exemption :: n. 1) in income taxation, a credit given for each ... l children or is a college student.
franchise :: 1) n. a right granted by the government to a perso ... on property, income or profits tax.
interest :: n. 1) any and all, partial or total right to prope ... nal property real property standing
joint tenancy :: n. a crucial relationship in the ownership of real ... ty property tenancy in common title
land :: n. real property, real estate (and all that grows ... See also: real estate real property
levy :: 1) v. to seize (take) property upon a writ of exec ... heriff's sale tax writ of execution
limited partnership :: n. a special type of partnership which is very com ... mited liability partner partnership
mortgage :: n. a document in which the owner pledges his/her/i ... losure notice of default trust deed
real property :: n. 1) all land, structures, firmly attached and in ... onal property real estate reversion
sale :: n. transfer of something (and title to it) in retu ... contract forced sale sheriff's sale
tax :: n. a governmental assessment (charge) upon propert ... unified estate and gift tax use tax
use tax :: n. a state tax on goods purchased in another state ... e" tax equivalent to its sales tax.

Popular Law Searches

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Other Law Terms - G

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garnishee :: n. a person or entity, quite often a bank or emplo ... ourt. See also: garnish garnishment
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general counsel :: n. the chief attorney for a corporation, who is pa ... e counsel." See also: house counsel
general damages :: n. monetary recovery (money won) in a lawsuit for ... s exemplary damages special damages
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general plan :: n. a plan of a city, county or area which establis ... uture development. See also: zoning
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gift in contemplation of death :: n. (called a gift causa mortis by lawyers showing ... ift tax unified estate and gift tax
gift tax :: n. federal tax on large gifts. Gifts to members of ... ance in gift tax planning is vital.
go bail :: v. slang for putting up the bail money to get an a ... arrest or pending trial or appeal.
good cause :: n. a legally sufficient reason for a ruling or oth ... od cause shown, the court orders:."
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good title :: n. ownership of real property which is totally fre ... or deed of trust on the property).